Tianjin Shipping Index(Aug.14-Aug.18)

Aug 25, 2017

Ⅰ. Tianjin Shipping Index (TSI)

Week 33, 2017 (Aug.14-Aug.18), Tianjin Container Freight Index (TCI) continued to decrease. Tianjin Bulk Freight Index (TBI) kept increasing. Tianjin Domestic Container Freight Index (TDI) continued to increase. Tianjin Shipping Index (TSI) performed strongly. The TSI was closed at 573.44 points with an increase of 3.66% from Aug.11 (the last release day of Week 32). The TSI trend is shown in the chart below:

The chart above shows the trends of TSI from Aug. 7 to Aug.18. The value of TSI in Week 33 is shown in the table below:

II. Tianjin Container Freight Index (TCI)

Week 33, 2017 (Aug.14-Aug.18), the trend of TCI is shown in the chart below:

In Week 33, the TCI continued the decrease trend of last week.

On Aug.14 (Mon.), the freight rates in European route, Mediterranean route and India-Pakistan route decreased slightly. The freight rates in North American route and South American route increased. The TCI decreased slightly by 0.07% on a day-on-day basis. From Aug.15 to Aug.18 (Tue. to Fri.), the freight rates in European route, Mediterranean West route, South American route and India-Pakistan route decreased overall. The freight rate in North American route decreased with a fluctuation. The TCI decreased rapidly by 2.70% on four consecutive release days.

The TCI ended at 462.99 points with a decrease of 13.16 points (2.76%) from Aug.11 (the last release day of Week 32).

The TCI index value saw several ups and downs on a day-on-day basis are shown as follows:

European/ Mediterranean route Since the importers were in the state of summer holiday, the cargo volume from factories declined rapidly. The intense competition for cargo was not relieved obviously this week. The freight rate showed a weak trend in the whole week. The freight indices in European route, Mediterranean East route and Mediterranean West route decreased by 2.65%, 2.49% and 3.49% respectively this week.

North American route Since June, the freight volume increased steadily. The transport capacity put on the market was stable. The supply and demand relation on the market continued to be improved. The freight rate kept increasing and hit a record high of the last five months. Until this week, divergence between the ship owners on whether the freight rate would keep an increase trend on future market arose. The freight rate fluctuated overall. The freight rate in North American West Coast route enjoyed a good momentum of increase. The freight indices increased 1.09% on a week-on-week basis. The freight rate in North American East Coast route decreased markedly and the freight indices decreased 2.44% on a week-on-week basis.

South American route Early this week, some ship owners raised the freight rate up slightly. Then, because of the low trading volume and the increasing pressure of ship loading rate, the center of freight rate kept decreasing and the freight indices of South American West Coast route, South American East Coast route and Central South American route decreased 2.57%, 3.63% and 1.89% respectively this week.

India-Pakistan route The strike by workers of India Dock and drivers of Pakistan pushed up the freight rate which was nearly three times that of the same time last year. That has overdraft the increase space. After a preliminary agreement on the strike was reached in the beginning of July, the freight rate started to decrease. This week, the decrease trend continued and the freight indices decreased 8.54% on a week-on-week basis.

III. Tianjin Bulk Freight Index (TBI)

Week 33, 2017 (Aug.14- Aug.18), Tianjin Bulk Freight Index (TBI) is shown as follows:

In week 33, the TBI increased constantly.

On Aug. 14 (Mon.), the freight rate of coal increased and the freight rates of grain and mineral ore increased slightly, which led to a day-on-day TBI increase of 1.04%. Then, the freight rates of coal and grain continued to increase and the increase of the freight rate of mineral ore extended obviously, which led the TBI to increase fast from Aug.15 to 18 (Tue. to Fri.). Day-on-day increase of each four release days were all over 1.5% and the TBI increased 8.22% in total.

The TBI ended at 744.71 points with an increase of 63.65 points (9.35%) from Aug.11 (the last release day of week 32).

TBI index value saw several ups and downs on a day-on-day basis are shown as follows:

TBCI The TBCI increased constantly this week and the TBCI ended at 561.49 points with an increase of 57.65 points (11.44%) from Aug. 11 (the last release day of Week 32). The supply of coal in Australia was sufficient and the freight rate continued to increase. For the Panamax market, the situation was good and the increase trend of the freight rate continued. The freight rate of the DBCT to Tianjin route increased over 13.5% this week. For the Capesize market, the freight rate also increased and the freight rate of Hay Point to Qingdao route increased over 8.5% this week.

TBGI The TBGI increased slightly this week and ended at 614.46 points with an increase of 20.33 points (3.42%) from Aug. 11 (the last release day of week 32). Domestic willingness to purchase soybeans increased, which made the deal in South America become active. The amount of the cargos in US Gulf increased and the carriers were in short supply, which made the freight rate increase constantly. The freight rate of South America to Tianjin route increased over 3.5%. The freight rate of US Gulf to Tianjin route increased about 3% and the freight rate of West America to Tianjin route increased over 4.5%.

TBMI The TBMI increased constantly this week and the increase extended later in the week. The TBMI ended at 1058.18 points with an increase of 112.97 points (11.95%) from Aug. 11 (the last release day of week 32). For the iron ore, the deal was obviously active with the coming of the peak season of the iron ore shipping market. Ship owners had strong intention to raise the freight rate. The available carriers were limited. The freight rate rose to a high level of the year. The freight rate of West Australia to North China route increased over 14% and the freight rate of Brazil to Tianjin route increased over 13%. As for nickel ore, the freight rate of the Handy-size carrier stabilized and increased, and the freight rate of Surigao to Tianjin route increased about 2%.

IV. Tianjin Domestic Container Freight Index (TDI)

Week 33, 2017 (Aug.14-Aug.18), the trend of Tianjin Domestic Container Freight Index (TDI) is shown in the chart below:

In Week 33, the TDI increased continuously.

The Inward Index kept the same with that of last week and TDI was pushed up by rising Outward Index. On Aug.14 (Mon.), the freight rate of Guangzhou-Tianjin route increased, which led the TDI stop decreasing and begun to increase. On Aug 15 (Tue.), the freight rate of Guangzhou-Tianjin route increased more and led the TDI create the biggest single day increase 1.19%. From Aug.16 to Aug. 18 (Wed. to Fri.) the increasing range of the freight rate of Guangzhou-Tianjin route slowed down and the freight rates of Shanghai-Tianjin route increased slightly and the TDI increased steadily. Finally, the TDI was closed at 657.13 points with an increase of 13.19 points (2.05%) from Aug.11 (the last release day of Week 32).

The value of TDI ups and downs on a day-on-day basis are shown as follows:

TDOI Tianjin Domestic Container Outward Freight Index (TDOI) kept stable in this week. The TDOI was closed at 735.12 points on Aug.18 (Fri.) which was the same with that of Aug.11 (the last release day of Week 32). In this week, the outward routes market kept stable and the shipping companies kept a watching attitude after the decrease of last round. And the indices of the three routes kept stable.

TDII Tianjin Domestic Container Inward Freight Index (TDII) kept increasing. The TDII was closed at 579.13 points on Aug.18 with an increase of 26.38 points (4.77%) from Aug.11 (the last release day of Week 32). Due to the depressed market, the freight rate was much lower than the same time of last year especially in Guangzhou/Shanghai-Tianjin route. The ship companies had strong intention to increase the freight rate and carried out the plan to increase freight rate this week. The freight rate in Guangzhou-Tianjin route increased sharply and the indices increased 36.02% or 7.5% on a w-o-w basis. The freight rate of Shanghai-Tianjin route increased steadily and the indices increased 0.45% on a w-o-w basis. The freight rate of Quanzhou-Tianjin route kept stable.

Source from : Tianjin Shipping Index

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